Photo courtesy of Laurent Error from L'Union / CC BY-SA 2.0
AAR Corp. reports news business wins during the third quarter of fiscal year 2017, as well as an increase in sales. Third quarter diluted earnings per share from continuing operations of 38 cents, which is an increase of 31% from the third quarter of fiscal year 2016. Third quarter shares were at $446.7 million during the third quarter, which is an increase of 8.4% from the third quarter of fiscal year 2016.
"We are very pleased with our progress during the quarter as we continue to use our strong financial position to support our customers," says David P. Storch, chairman, president and CEO of AAR. "We are investing in inventory and systems infrastructure as we provide cost effective long term supply chain solutions for our customers."
Sales in aviation services increased 9.6% in the third quarter of fiscal year 2017, something the company says reflects “continued strong performance for the company’s industry leading supply chain management solutions.” New business wins during the quarter include a comprehensive supply chain management and component repair agreement with Allegiant Air covering their fleet of A320 aircraft, and an agreement to provide landing gear overhaul and exchange services for SkyWest's fleet of Bombardier CRJ aircraft. Services began during the quarter. After the end of the quarter, AAR signed a five-year agreement with Interglobe Aviation Ltd (IndiGo), to provide landing gear overhaul services on up to 49 full ship sets of Airbus A320 landing gear.
Other third quarter fiscal 2017 report highlights include:
- Sales to commercial customers represented 68.1% of consolidates sales, up from 60.6% in the same quarter during fiscal year 2016.
- Sales to government and defense customers represented 31.9% of consolidates sales, down from 39.4% in the same quarter during fiscal year 2016.
- Net debt at February 28, 2017 was $162.7 million, compared to $145.3 million at February 29, 2016. AAR Corp. attributes the increase to investments in assets to support recently announced long-term flight hour program awards.